If you have never been part of a small
business and your only experience is with a corporatist organization, some of the above aspects may seem foreign if not outright
dangerous. In order to help define the difference between the two mindsets, Jun Loayza founder of Future Delivery provides
the following assessment in Corporate World vs Entrepreneurial Life.
“The
corporate world is calling with nice cars, fancy lunches, and guaranteed paychecks — if you’re willing to put
your dream company on hold and sit in a low-walled prison five days a week. If you’re torn between stable income
and the wish fulfillment of a bold new venture, listen up to someone who’s had the pleasure and pain of living in both
worlds.”
Work/Life
balance vs Lifestyle
Steady
Income vs No Money
Good
Enough vs Better than All the Rest
These
headings compare the vast differences in thinking, temperament, objectives and goals. Start-up attempts usually begin with
an idea for a product or service that is not currently available. Formulating a business plan and identifying a method to
monetize a return is often overlooked, when the visionary is engaged with the excitement that a successful rollout could generate.
A small business owner of a more established sector
operation is more concerned with surviving competition, maintaining margins, expanding market share and gaining access to
capital for growth and expenses. This difference from the dreamer turned practical, separates the emphasis both apply.
So the similarities between the merchant and the
innovative entrepreneur are far more in common than the style used by Corporate America Is Killing Your Start-up Dreams. The Inc. publication presents aspects of the corporate culture and how it works.
Note the vast difference in the business model employed by corporations from
the entrepreneur. While they preach company loyalty, corporatists actually exercise a pattern of expediency.
Corporate America Creates
a False Sense of Security
The corporate climb is slow and at each rung you're reminded that there is so much still to do before reaching the
next level
Knowledge
is power
Mitigating
risk is key
You
only live once
Corporatism 101 presents background on the difference between corporatism and corporations. However, the blunt distinction in both prove
to be light years different from an economy driven by creative and pioneering projects that advance, grow and create
actual new wealth.
Corporate mores seldom
exhibit a passion to improve the economic well being of consumers, but frequently tap the consumerism of the customer to keep
the engine of materialism as the life blood of business.
Add to this aspect the financial sector of the corporate economy and the lack of any real competition is vividly
demonstrated. There is little room for start-up financial ventures, when the source of capital access is mainly reserved to
the largest of corporate companies.
It
is because of this reason that most plans fail. Money is a necessary ingredient to float a start-up. Finding an angel financier
to raise the needed venture capital is usually reserved to seasoned business people.
Nonetheless, for those brave souls who strike out on their own, the risks are
substantial. What happens if your flop? Going back to a previous life may not be an option.
Why Corporations Won’t Hire An Entrepreneur defines the issue well.
“Corporations have become factories of mental models created over decades of controlling how and what people
think through the influence of power and money. The attitudes have created cultures of “we are in control and we pay
you to follow the rules we make“.
These mental models were designed to build organizations where compliance and productivity of human labor
determined profitability. Subsequently organizations were built around a hierarchy of control similar to the military
where the strategy was to beat the enemy. This mental model is dependent on compliance. Compliance through control
of resources via influence of power and money has proven to be limiting and costly.”
Basically, the dilemma is that forced compliance works better than free association
in the trenches of economic dominance. The essential notion of a free market is an illusion. In the real world of goods and
services the big box store, energy supplier, food processor and financial services are the realm of protective trade secrets.
While it might be easy to analyze how
a large retailer operates, it may not be as transparent on how that business maintains its dominance over their own market
share. The entrepreneur is constantly fighting to get into the game. Carving out a small niche that flies under the corporate
radar screen is the best chance to refine and expand a start-up.
Forget about transferring the entrepreneurship mindset into the corporate structure. Both planets orbit
in different universes. With the systemic decline in a viable economy, the unemployment stats and the underemployment part
time jobs that emerge from the corporatist companies allow for little future for our society or individual security.
America was built by daring entrepreneurs long before
the corporate system.
James Hall –
June 24, 2015
